PEST Analysis
Political Factors
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. It must be considered issues such as: China has offered a favorable investment environment for the investors from all over the world to invest, manufacture and manage.
Firstly, China's political situation was stable and the people lived and worked in peace and contentment, which created necessary social conditions for attracting foreign investment.
Secondly, the initially established market economy system and the gradually perfected laws and rules created favorable legal environment for foreign investment.
During the past 24 years when China implemented reform and opening to outside world, China has developed at a supernormal speed in absorbing foreign investment and has made great achievements attracting the world attention. Up to the end of 2002, China has ratified an accumulative total of 424,196 foreign-invested enterprises with contracted investment of US$828.60 billion and US$447.966 billion have been put into use, thus China has become one of the countries that absorbed the most foreign investments. Since 1993, China has in many subsequent years turned into a country that attracted the most foreign investment among developing countries and also topped the world in absorbing foreign investment.
Thirdly, related foreign investment policies have also adapted to the requirements of market economy and international rules. Industrial policy has become an important way for China to control foreign investment. According to the development strategy of national economy and industrial development, China established comprehensive industrial policies for foreign investment to lead them to invest in target industry. The Chinese government in April 2002 issued the newly amended "Catalogue for the Guidance of Foreign Investment Industries," encouraged more foreign investment to flow into target industries, for example, agriculture, infrastructure construction, export and high-tech industry, however, the government has specifically prescribed industries those are not allowed to erect exclusive foreign-funded enterprises and the strategic industries and investment fields that the Chinese part must hold a controlling share.
Economic Factors
Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing.
The increasingly optimized Chinese macro- economic environment provided realistic guarantee and broad prospects for foreign investment.
During the past 20 years of reform and opening up, the national economy has been keeping a high-speed development with an average increase speed of two -digits, a and has topped the countries all over the world. Since the latter period of the 1990s, the increasing speed though to certain extent dropped, still reached 7-8%, which was really commendable under the circumstance that the global economy increase slowed down. The Gross Domestic Product in, RMB 8.940.4 billion Yuan 2000, RMB 9,593.3 billion Yuan in 2001 and RMB 10,239.8 trillion Yuan in 2002 and become the sixth largest economic entity of the world. China's economic development level was also improved with a high speed, the per capita GDP was nearly US$1,000, the people's living standard has been improving by a big margin and the problem of providing them with adequate food and clothing was settled, and some places and people have already took the lead in accession into the middle-advanced level.
From the perspective of factors of production, China's production costs consisting of labor force, raw materials and service and so on still possess powerful global competitiveness. The cost of payment is enormously under that of the developed countries and as well under that of most developing countries. China also increasingly elevates its economic opening degree. The total volume of export and import amounts US$620.8 billion in 2002, covering more than 40% of the proportion of GDP. Of which there is over US$325.6 billion of export, covering about 25% of the proportion of GDP, even more than that in many developed market economy countries. An annual foreign investment of about US$50 billion has been absorbed, covering about 4% of the GDP. The above indicated that China's favorable macro-economic environment offers realistic conditions and reveals a broad prospect for foreign investment.
Socio-cultural Factors
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
- What are attitudes to foreign products and services?
- What are the roles of men and women within society?
- What is the dominant religion?
According to local research by Best Coffee Company, females comprise of at least 60 percent of total clientele base for the coffee business, because women are more easily influenced by fashion trends and are more likely to enjoy the coffee shop atmosphere by themselves or with friends. A similar scenario exists in China. Chinese women are more sensitive to fashion trends and are always willing to try new things. They treat coffee shops as a special occasion for indulgence and relaxation. While Chinese males mainly discuss business and meet with clients or colleagues in the coffee shops, they are not price-sensitive because in most occasions, companies will pay for the business expense, or Chinese males do not usually care about high costs in front of their female friends. Thus, Chinese females should be studied and targeted in China.
China is one of the world’s smallest coffee markets. Annual coffee production there reaches a mere 1,000 tones, compared with the 15bn tones churned out by Brazil each year. Before the entrance of instant coffee brands such as Nescafé and Maxwell House into China in 1995, consumption of the stuff was also virtually unknown. This is changing slowly. Total coffee imports rose by 75% last year to some 9,500 tones. And according to market research firm AC Nielsen, instant-coffee sales in China increased by 42% year on year in 2003. For US-based coffee retailer Starbucks, this is the time to build brand and customer base in China.
Teahouse: China is a tea country with a long history of daily tea-drinking, especially for the elder’s generation, which prefers to drink tea on different occasions and during different time periods throughout the day.
The teahouse is a very popular social venue for Chinese people. It is part of the food culture, with a history spanning many centuries. It is still an important part of people's social life.
Since China promoted the open-door strategy to embrace more western culture and lifestyle, the tea house's domination has been challenged by the foreign coffee house. Coffee houses have gained popularity in China especially in the big cities like Beijing, Shanghai, Guangzhou and seashore communities.
Technological Factors
Technology is vital for competitive advantage, and is a major driver of globalization.
The number of internet subscribers is expected to pass the 80mn mark in 2005, from around 65mn in 2005. However the low penetration rate, at just 5% in 2004, suggests there is still a way to go. PC penetration is 4.3% nationwide, but is forecast to reach 8.3% in 2008, although it is much higher already in some areas. For example, household PC penetration is about 60% in Shanghai. The number of broadband subscribers was about 11mn in 2004, and is expected to more than triple over the forecast period.
In fact, Taiwan Starbucks launched on go card in 2002, which is a prepaid card and it offer customers discount and special gifts if they use the card frequently. This is quite popular with the local customers.
The Strategies in China
Since Chinese government have implemented the significant reform and opening policy to outside world, China achieved the enormous increase in economy. Meanwhile, lots of foreign corporations were attracted by its significant changes and took investment in succession. Starbucks was one of them who chose China as their target market in 1999. Considering differences between Chinese consuming habits and Westerner’s, Starbucks adopted Chinese-characterized marketing strategies in four main areas, namely production, price, place and promotion.
Products
In China, Starbucks, like other coffee shops, supplies classic coffee products, such as whole bean coffee, ground coffee and instant varieties. It also has looked to expand offerings with other coffee alternatives which are cappuccino, latte, flat white, iced coffee. In view of China, as tea-consuming nation, where accounts for only one percent of world coffee consumption, Starbucks launches the tea in their coffee outlets in order to penetrate China domestic market (Qin, 2004). In addition, Starbucks remarked some Chinese traditional festivals, such as the Mid-Autumn Festival and the Dragon Boat Festival, when it usually supplies moon cakes or zhong zi to customers (Bolt, 2005)
Price
When the first coffee shop opened in 1999, around $2 of a cup of coffee priced by Starbucks was only for foreign visitors or expatriates. It is because that Chinese customer had comparative lower average consumption standard at that time. With its significant rising currently, however, more and more Chinese consumers, especially urban citizen, became Starbucks’ target consumers and lots of them consider that Starbucks’ price is acceptable.
Place
The most important secret of success for Starbucks to open hundreds of stores in China is not in coffee beans, but in the location. Its coffee outlets are generally located in shopping malls, high-tech office towers, night club, bar districts or residential areas (Qin, 2004). It can be seen from the above locations that all of them have characteristic of high visibility, high traffic and great amount of seating. High visibility will attract attention and increase brand reputation. In other words, Starbucks itself is the best advertisement for the brand. High traffic means high volume of customers. The more customers exist, the more attention can be achieved. In Wang Fu Jing commercial area in Beijing, for example, Starbucks opened two closed coffee shops because there are large volume of travelers and citizens every day. The mount of seating reflects the volume of in-store customers at peak times. According to investigation in Beijing’s Oriental Plaza, Starbucks store is located in the hallway with external seating capacity of around twenty to thirty (Qin, 2004).
Promotion
Starbucks implements its global marketing strategy while also adapting to local market. In China, it mainly promotes itself through office visits and free sample to customers but seldom does it spend on advertisement (Qin, 2004). Besides, it offers seasonal promotions based on holiday themes. Staffs wear special clothes; decorate the store; put up the designed banners or other promotional materials. During Chinese New Year, for example, staffs usually decorate the store with red lanterns or spring festival scrolls.
Action Plan
Action Plan 1: Promotion
In order to increase market share of Starbucks, three ideal promotional methods can be considered, namely leaflets, coupons, and vending machines.
1. Leaflets
2. Coupons
Evaluation
1. Starbucks can promote itself through leaflets. By the description on leaflets, it can improve reputation of Starbucks and appeal to potential customers, who enjoy drinking coffee but have never been to Starbucks yet. However, it would be not effective as much as company expected and even cause some negative effect. Some customers, for example, ignore leaflets sent by promoters and some throw it away when they get it and even leaflets can result in someone’s repulsive emotion.
2. Compared with leaflets, sending coupons in street is more attractive to customers. It is because that coupon is not only advertisement also it has added value. Customers, especially potential customers, who are unfamiliar with Starbucks, would rather consume by coupons than spending money. Therefore, coupons can benefit customers and increase turnover of Starbucks as well. But it is still lack of uncertainty in aspect of increasing market share. For example, some customers do not care about added value because of wealth.
Action Plan 2: Promote new product
1. While the coffee offered by Starbucks remains the same worldwide, food offerings and merchandise can be localized to enhance the customer experience.
2. Starbucks' best-selling beverage throughout China is its latte (steamed milk and espresso), and though China is a tea-drinking nation, the company provides fewer tea options than in the United States. For this point of view, Starbucks need to consider providing Chinese people a variety of choices which is specifically designed for them.
3. Lunch at Starbucks.
Evaluation
1. This plan is very and practical. There are currently around 165 Starbucks in 10 cities in China: Beijing, Guangzhou, Hangzhou and Ningbo, Zhejiang, Nanjing, Suzhou, and Wuxi, Jiangsu, Shanghai, Shenzhen and Tianjin. It is important for Starbucks to take advantages of these chances to attract first-time customers. By dong this, we provide a variety products and provide products time from time and cater for the customer of china.
2. The Teahouse is a very popular social venue for Chinese people, and many customers prefer to drink tea on different occasions and during different time periods throughout the day. It is part of the food culture, with a history spanning many centuries. If Starbucks can provide people a variety of choice which is specifically designed for people in china, it will be a good way of localization. However, the disadvantage of this plan is that many Chinese people already regard Starbucks as a coffee shop and since its popularity and brand recognition is well established, some customers may think Starbucks will become less attractive by doing this.
3. In addition to foreigners and tourists, the chain is attracting increasing numbers of local customers as well, mainly upwardly mobile white-collar workers in large cities who account for approximately 70% of Starbucks. These office workers are usually well educated and have a decent income, and many of them choose to eat lunch in some nearby cafeterias and some of them meet friends or clients during the lunch time. So it would be a good idea for Starbuck to cater for these people’s needs and make it a good place for lunch meet up for busy office workers. In fact, starbucks in Taiwan has already offer lunch to customer, like spaghetti, salad and burgers, and it costs 30-35 RMB, plus a cup of coffee. So it’s affordable for many middle income works.
Action Plan 3: Improve Customer Service
1. Install free hotline for customer to complain
2. Change from self-service to full-service
3. Pay more salary to employees
4. Improve service system
Evaluation
1. Free hotline telephone provides another channel for clients to make the complaint about Starbucks. For instance, consumers might be dissatisfied about services, coffee and food tastes. These useful complaints would be brought to research and develop both products and services. However, Starbucks has to spend a lot of money for installing hotline telephone and telephone fees.
2. Full-service provide the convenience to clients. Although full-service has to use a lot of money for recruiting more employees to serve at tables and management cost, it leads to customers’ satisfaction and impression.
3. Store staffs are people who are close to customers and provide services to them. Therefore, Starbucks could pay more salary to employees to offer impressive services to clients. The high salary is the important factor to motivate them to work effectively. Nevertheless, the company would have to spend more money in salary expenditure.
4. Because the price of product is quite high, besides the great taste of products, clients also expect to obtain the prime services from the company. Consequently, Starbucks should improve service system in term of quick and high standard of services. These might allow consumers to be satisfied and come back again. Whereas the company has to pay a lot of money to improve service system, it results in the achieving for long term of the company.
Action Plan 4: Cut unnecessary cost
Starbucks plant the coffee bean and produce other materials in the target country rather than import them from foreign countries. Moreover, setting up a base and infusing the infrastructure investment is necessary for a large-scale company like Starbucks.
Evaluation
In the short-term, this action could cost a substantial amount of its revenue. For example, if Starbucks prefers to produce the coffee bean and other materials in the target country, the experts both in technology and management are significant; their salary could be a burden of Starbucks. However, in the long-term, this action is worth doing because it benefits Starbucks much through saving the transportation cost, which becomes much higher due to the increasing price of energy, such as gas and fuel.
Action Plan 5: Marketing Channels
- Introduction of vending machines
Evaluation
Investment cost of building coffee store is very high. Starbucks should consider the new market channels to launch the Starbucks coffee vending machines into market. In addition, the area that has many people around. For example, public place, train station, university, bank and private hospital. Introduction of vending machines could reduce store opening cost and penetrate in to variety of channels not only in Starbucks coffee store but customers also find Starbucks coffee at anywhere they go. Moreover, it can increase sales volume. Nevertheless, introduction of vending machines can be affect with Starbucks’ image as well.
Action Plan 6: Partnerships
In order to attract number of customer come to Starbucks, one of the possible solution is by partnership with other company such as Pepsi-cola that Starbucks has done in 1996 began to sell Frappuccino coffee drink which is easily to find in many grocery stores. The possible expansion of the joint venture between Starbucks and Pepsi-cola by selling soft drink that produced by Pepsi-cola company in Starbucks store. Having considered that customer has variety needs. Therefore, if Starbucks only sell coffee, it will limit the market which only coffee drinker who like to go to Starbucks. However, if Starbucks also sell other kind of drinks, it will attract more customers to come by offering more variety choices to customer.
Evaluation
On the other hand, this strategy will destroy Starbucks’s image which people have known Starbucks as a coffee shop which provide good quality of coffee. This strategy might also affect to Starbucks own product. The sales of coffee as Starbucks’s main product might be decreased due to more variety choice offering and customer might compare the price of a cup of coffee with a can of soft drink which much cheaper.
Recommendations
1. Discount coupon
Although there are 1.3 billion consumers base in China, most of them are tea-drinking peers who prefer spending money on tea to coffee. In order to wake up Chinese and smell coffee, Starbucks would better adopt interest concessions, e.g. coupons, to potential consumers. To general Chinese consumers under middle-income, coupons with high nominal value can appeal to them because coffee is a luxury consumption product to them and they prefer paying less or even no pay to taste it. Middle-income consumers, such as the white collar, however, Starbucks would present low nominal value of coupons. It is because of higher income that those peers do not care much about discount coffee shop give to them.
2. Promote new product in each festival
Since people in china have the custom to celebrate traditional festivals, like spring festival, and Chinese ’s Day, we can provide moon cake on mid-autumn festival, for dragon boat festival, and some special refreshment on Chinese ’s Day.
3. Improve customer services
The advances of service system lead to the increase of Starbucks’ sales directly. In China, the company should provide products and services that Chinese consumers need and serve it very quickly (Paula M. Miller, 2004). Speed and impressive services are also other factors which affect Chinese choosing western restaurants (The China business review, 2004: see figure 1). Therefore, Starbucks should enhance the services to become more rapid and excellent through the recruitment of employees, training, and improvement of service system. First of all, the company would employ employees who are appropriate in the service job. They could be friendly, polite and patient. Moreover, the company has to provide the knowledge about products and services to new employees. Developments of service system are finally necessary point. For instance, the responsibilities of employee could be divided exactly, the stores might use machines to save time of production, and the service might change to full-service. This solution would significantly increase sales in China because it is adapted properly with Chinese’s consumer behavior.
4. Plant coffee bean and use materials in local country
In china, this action plan is highly recommended. Two possible explanations could be given. On the one hand, China is the most labor—abundant country in this globe. Therefore, Starbucks could save the cost by paying a much lower salary than in other country, such Japan, Korea, and Singapore. On the other hand, China’ developments is fast than most other country. Also, the standards of people’ lives rise rapidly, the quality of life has been paid more attention on. As a result, the numbers of consumer are becoming higher. Therefore, it is important for Starbucks to provide adequate products and service to meet the higher customers’ needs.
5. Introduce Vending Machine
According to the number of vending machines has developed rapidly in China since 1999. By 2004 vending had had grown immensely in China (“Vending in,” 2005) China is the most dynamic market with CAGRs of 18% (“Vending in,” 2005). Focus on teenagers and young adults who crazy with vending machines in China. Moreover, Chinese have the world biggest population. This is the opportunity to get huge sales volume. Furthermore, the Chinese living style has changed. In the past China was close country but now it gradually developed and explores the country to the world. In addition, Chinese absorb western culture quickly. People lifestyle is very busy especially in business area such as Shanghai, Guangzhou and Beijing. Consequently, launching coffee vending machines can be well responded from Chinese because it convenient, quick and save time.
References
China is Starbuck's Cup of Tea, Restaurant Business, 00978043, 6/15/2005, Vol. 104, Issue 10. Retrieved August 19,2005, from Business Source Premium database
Starbucks Blooms In China, Asia Monitor: China & North East Asia Monitor, 14705184, Aug2003, Vol. 10, Issue 8. Retrieved August 19,2005, from Business Source Premium database
Copy caf, By: Adler, Carlye, Fortune (Europe), 07385587, 9/29/2003, Vol. 148, Issue 6. Retrieved August 19,2005, from Business Source Premium database
Coffee with Your Tea? , Economist, 00130613, 10/6/2001, Vol. 361, Issue 8242. Retrieved August 19, 2005, from Business Source Premium database
Starbucks in The Forbidden City, By: Shermer, Michael, Scientific American, 00368733, Jul2001, Vol. 285, Issue 1. Retrieved August 19,2005, from Business Source Premium database
Vending in Emerging Countries, Euromonitor Archive. July 26, 2005, Retrieved http://www.euromonitor.com/article.asp?id=5341&print=true
Miller M, P. (July-August 2004). Quick Service Hits China. The China Business Review. Retrieved August 19, 2005, from Business Source Premium database
Chris B. (2004), “Chinese wake up and smell the coffee”, Retrieved from.
Gray J. (2005), “Economy of China”, International Economy Investigation Institution, China, Retrieved http://www.economywatch.com/world_economy/china/.
Hope L. (2004), “Coffee brews a future in China”, Retrieved
Kristen M. B. (2005), “Starbucks Adjusts Its Formula in China”, Retrieved .
Linda Q. (2004), “Strategic Analysis for Best Coffee in China”, Faculty of Business Administration, Guangdong University, Retrieved
Appendix
Figure 1.
COMPANY TIMELINE
2002
Signs memorandum of understanding with Fairtrade Labelling
Organizations International (FLO) enabling Starbucks to enter
into licensing agreements with national Fair Trade
organizations to sell Fair Trade certified coffee in the
countries where Starbucks does business.
Publishes its first Corporate Social Responsibility Annual
Report.
Celebrates 10-year anniversary of Starbucks IPO.
Introduces Starbucks DoubleShot® coffee drink to the
ready-to-drink category.
Signs licensing agreement with TransFair Canada to bring
Fair Trade CertifiedSM coffee to more than 270 retail locations
in Canada.
Reinforces its dedication to coffee producing countries and
the farmers who grow Starbucks coffee through an expanded
line of Commitment to Origins™ Coffees.
Extends the beverage menu line to include crème, a
non-coffee blended beverage option.
Launches its high-speed wireless internet service branded
T-Mobile® HotSpot™.
Tazo and Mercy Corps establish Collaboration for Hope and
Advancement in India (CHAI), a project to strengthen
communities in the tea growing district of Darjeeling where
Tazo purchases some of the finest teas available in the world.
Organizes more than 45,000 volunteer hours in the month of
September and contributes more than $275,000 through the
Starbucks Make Your Mark program to charitable
organizations across North America.
Starbucks Board of Directors authorizes stock repurchase
plan of up to 10 million shares.
Establishes Seattle Coffee Trading Company (SCTC) in the
Canton of Vaud, Lausanne, Switzerland.
Starbucks Coffee International opens in Oman; Indonesia;
Germany; Spain; Puerto Rico; Mexico; Greece and Southern
China Macau and Shenzen.
Starbucks location total=6,193
2003
The Starbucks Foundation awards more than 650 grants
totaling $6.5 million to literacy, schools and community-based
organizations across North America since 1997.
Begins three-year $225,000 commitment to America SCORES,
a national non-profit, youth development organization that uses
soccer and literacy to inspire teamwork among at-risk children
in urban public schools.
Introduces Shade Grown Mexico and Fair Trade Certified™
coffees to the coffee selections available to Hyatt hotel and
resort’s guests.
Develops innovative, next-generation Starbucks Card
combining credit and stored value technologies.
Launches Starbucks Card Duetto™ Visa®, the first-of-its-kind
payment card blending Visa credit card functionality with the
reloadable Starbucks Card.
Starbucks Board of Directors authorizes stock repurchase plan
of up to 10 million shares.
Acquires Seattle Coffee Company, which includes Seattle’s
Best Coffee® (SBC) and Torrefazione Italia® (TI) coffee brands.
Celebrates Earth Day with a $50,000 contribution to
Earth Day Network.
Introduces Iced Shaken Refreshments, a handcrafted and
refreshing new beverage category featuring coffee and tea
shaken over ice.
Starbucks Coffee International opens its 1,000th Asia Pacific
store in Beijing, China.
Encourages more than 50,000 hours of partner and customer
volunteer time and contributes $500,000 to nonprofit
organizations across the United States and Canada through
Make Your Mark volunteer program in September.
Opens new state-of-the-art roasting facilities in Carson
Valley, Nev. and Amsterdam, The Netherlands.
Starbucks Coffee International opens in Turkey, Chile,
Perú, and Cyprus.
Current location total = 7,225
2004
Starbucks Coffee International opens in Paris.
Extends Conservation International partnership with a new
three-year agreement and $1.5 million grant, and provides $2.5
million loan to help capitalize the non-profit’s newly launched
Verde Ventures fund. Verde Ventures provides direct access to
affordable credit for small-scale coffee producers.
Opens Starbucks Farmer Support Center in San Jose,
Costa Rica.
Introduces in-store CD burning service powered by HP. The
new music delivery experience allows Starbucks customers to
create personalized CDs at the Starbucks Hear Music™
Coffeehouse in Santa Monica, California.
Dedicates six weeks to promote environmental awareness in its
Company-operated stores in the United States and Canada and
engages millions of customers in a dialog of environmental
stewardship.
Tazo and Kraft Foods announce licensing agreement to
distribute Tazo super-premium teas in U.S. grocery channels.
Announces Starbucks and Jim Beam Brands Co. agreement to
develop and market a superpremium Starbucks-branded coffee
liqueur outside of Starbucks stores.
Presents Jumpstart with $100,000 in honor of the non-profit’s
10-year anniversary.
Loans $1 million to Calvert Community Investments, enabling
Calvert to provide affordable credit to the Fair Trade™ Certified
coffee farmers.
Joins the United Nations Global Compact, an international
network of corporations, U.N. agencies, trade unions and
non-governmental organizations that support a shared set of
nine principles about the environment, labor and human rights.
Expands agreement with United Airlines to include cooperative
marketing agreement.
Debuts strategic marketing alliance with XM Satellite Radio
featuring a 24-hour “Starbucks Hear Music” channel.
Launches Hear Music™ media bar CD burning service in select
locations in Seattle and Austin.
Introduces new Frappuccino® Light blended coffee beverages.
Signs licensing agreement to open Seattle’s Best Coffee cafes in
more than 400 existing Borders Books & Music® stores over the
next several years in the continental U.S. and Alaska, and within
new Borders stores as they open.
Introduces 100 percent Kona Coffee as the first of the Black
Apron Exclusives™ assortment of coffees, a new line of rare,
exotic coffees available only in limited quantities.
Subsequent Black Apron Exclusives coffees include Ethiopia
Harrar, El Salvador Estate Pacamara and Aged Sumatra.
Releases Ray Charles, Genius Loves Company CD through a
collaboration between Concord Records and Starbucks Hear
Music™.
Forms Conservation Coffee Alliance partnership with the
United States Agency for International Development and
Conservation International in an effort to improve the
livelihoods of small-scale coffee farmers.
Grants $500,000 to America SCORES to promote literacy
and the physical and social well-being of at-risk youth.
Expands high speed wireless service, T-Mobile® HotSpot™ to
more than 3,300 Starbucks stores.
Current location total = 8,569
2005
Began offering Chantico™ drinking chocolate in Starbucks
stores throughout the United States and Canada. Best
described as a “drinkable dessert,” Chantico™ is an indulgent
chocolate experience that builds on the tradition of European
drinking chocolate.
Starbucks Coffee International opens in Jordan.
Ray Charles Genius Loves Company wins 8 GRAMMY®
Awards including Album of the Year and Record of the
Year.
Introduces Starbucks™ Coffee Liqueur. The mixable and
versatile liqueur is the first of its kind to feature 100 percent
Starbucks Coffee, blended with the finest spirits. Starbucks™
Coffee liqueur is not sold in Starbucks stores, but only in
licensed establishments where premium distilled spirits are
sold.
Responding to the tremendous tsunami devastation in South
Asia, Starbucks donates more than $1.5 million for tsunami
relief and recovery, channeled through a variety of relief
organizations around the world, including Oxfam affiliates,
the Red Crescent Society and Save the Children.
In conjunction with Major League Baseball, introduces a
unique, limited edition Starbucks Card bearing the image of
Seattle Mariners Superstar Ichiro Suzuki. This first-ever
commemorative Starbucks Card benefits children’s charities
in the United States and Japan.
Acquires Ethos™ Water and makes a commitment to donate
$1.25 million to support clean water projects around the
world.
Current location total = 9,671
Figure 2
Why Chinese Consumers Choose Western-Style Fast Food Restaurants, 2001
Notes: Multiple-choice questions; totals exceed 100 percent. Source: IMI Consumer Behaviors and Life Patterns Yearbook Beijing survey N. 2002-2003 = 407; Guangzhou survey N = 493; Shanghai survey N = 482, 28 July-August 2004 THE CHINA BUSINESS REVIEW